SALT LAKE CITY, July 1 UT-Dynatronics-Nasdaq
SALT LAKE CITY, July 1 /PRNewswire-FirstCall/ -- Dynatronics Corporation
(Nasdaq: DYNT) today announced that the company has received a letter from
NASDAQ stating that for the last 30 consecutive business days, the bid price
of its common stock has closed below the minimum $1.00 per share requirement
for continued inclusion under NASDAQ's Marketplace Rules. As a result, the
company will be given 180 calendar days, or until December 22, 2008, to regain
compliance. If, at anytime before December 22, 2008, the bid price of the
common stock closes at $1.00 per share or more for a minimum of 10 consecutive
business days, NASDAQ will provide written notification that compliance has
been regained.
The leaders of Dynatronics intend to use their best efforts to regain
compliance with NASDAQ's minimum bid requirement.
"A longer and more costly assimilation of last year's acquisitions has
apparently caused some to lose confidence in holding our stock," stated Kelvyn
H. Cullimore Jr., chairman and president of Dynatronics. "The resulting
selling pressure pushed the stock price down and triggered the deficiency
notice from NASDAQ.
"Fortunately, we are starting to see the improvements that motivated the
acquisitions last year. Not only are capital equipment sales improving, but
gross margins as a percent of sales in April and May were higher than any
month this fiscal year. We believe these improvements, together with our
previously announced $1.9 million in annual expense reductions, will help pave
the way back to profitability and restore confidence in owning our stock."
Dynatronics manufactures, markets and distributes advanced-technology
medical devices, orthopedic soft goods and supplies, treatment tables and
rehabilitation equipment for the physical therapy, sports medicine,
chiropractic, podiatry, plastic surgery, dermatology and other related
medical, cosmetic and aesthetic markets. More information regarding
Dynatronics is available at http://www.dynatronics.com.
This press release contains forward-looking statements. Those statements
include references to the company's expectations and similar statements.
Actual results may vary from the views expressed in the forward-looking
statements contained in this release. The development and sale of the
company's products are subject to a number of risks and uncertainties,
including, but not limited to, changes in the regulatory environment,
competitive factors, inventory risks due to shifts in market demand, market
demand for the company's products, availability of financing at cost effective
rates, and the risk factors listed from time to time in the company's SEC
reports including, but not limited to, the report on Form 10-KSB for the year
ended June 30, 2007, and its subsequent quarterly reports on Form 10-QSB.
SOURCE Dynatronics Corporation
